Here’s Why These Five Stocks Are Gaining Ground on Tuesday

Although the three indexes are close to flat after the bell as traders await the upcoming Brexit vote on Thursday, five stocks are gaining ground above the market.

Let’s take a look why Rosetta Genomics Ltd. (USA) (NASDAQ:ROSG), WP Glimcher Inc (NYSE:WPG), Galena Biopharma Inc (NASDAQ:GALE), Chromadex Corp (NASDAQ:CDXC), and Stone Energy Corporation (NYSE:SGY) are surging today. In addition, we are going to see what smart money investors from our database think about the stocks in question.

Hedge fund sentiment is an important metric for assessing the long-term profitability. At Insider Monkey, we track over 700 hedge funds, whose quarterly 13F filings we analyze and determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).

David Smart/Shutterstock.com

Rosetta Genomics Rises on Approval

Nano-cap Rosetta Genomics Ltd. (USA) (NASDAQ:ROSG) is 23% higher after the New York State Department of Health approved the company’s multiple fluorescence in situ hybridization tests for detection of amplifications or rearrangements of DNA in a number of hematologic cancers, such as leukemias, lymphomas and myelomas. The approval makes Rosetta’s test panels for various malignancies available in all 50 states. It is unclear what the financial impact of the approval will be, however. As with all nano-caps, investors should do due-diligence before buying or selling. No funds in our database of 766 elite funds held shares of Rosetta Genomics Ltd. (USA) (NASDAQ:ROSG) at the end of March. Ken Griffin’s Citadel Advisors is one of the shareholders of Rosetta Genomics, holding 25,927 shares as of the end of March.

WP Glimcher Rises on Leadership Transition

WP Glimcher Inc (NYSE:WPG) shares have advanced by around 5% after the company announced the resignation of CEO and Vice Chairman Michael P. Glimcher effective immediately. To replace Glimcher, the company’s board has appointed Louis G. Conforti as interim CEO. Conforti has decades of investing and real estate experience. In addition to the management change, the company has said it will propose a name change to Washington Prime Group Inc at the next annual shareholder meeting on August 30. The number of funds from our database with holdings in WP Glimcher Inc (NYSE:WPG) rose by seven quarter-over-quarter to 17 at the end of March.

On the next page, we examine Galena Biopharma, Chromadex Corp, and Stone Energy Corporation.